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How Centene cost issues show future glimpse into Trump's Medicaid cuts

By Forbes  
   July 09, 2025

The problems Centene appears to be having managing the costs of low-income Americans covered by Medicaid and individual plans under the ACA could only be the beginning of what's to come for more health insurers. Centene last week pulled its financial forecast for the rest of this year after an outside firm's review of data that showed subscribers in its ACA plans are sicker and need more care than the company anticipated. In addition, Centene is also seeing higher cost trends in its Medicaid business — coverage for low-income Americans the insurer helps more than two dozen states manage. On Monday, Centene rival Molina Healthcare lowered its earnings guidance for the rest of the year in the face of cost pressures in all three of the government-subsidized health insurance programs it helps manage: Medicaid, Medicare Advantage and individual coverage under the ACA.

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